No AI disclosure rules doesn't mean no AI disclosures

Scott Lesmes and Ryan Adams were quoted in Accounting Today’s article that covered a virtual conference hosted by Financial Executives International. Scott noted that “there are many risks that come with AI, including false or misleading information, data breaches, cyberattacks, intellectual property risk and much more.” Scott and Ryan added that there is a need for robust AI governance.

Ryan promoted a nuanced approach: "You could go on forever with these AI risks … Just because you use AI and a risk is potential does not necessarily mean disclosure is appropriate. You need to spend time thinking about whether AI-related risks are appropriate to disclose and, if they are, they should be narrowly tailored to describe the material risk." 

Read the article on Accounting Today.